The Magnetic Island State School is in the unique position of catering for a population that resides on an island eight kilometres off the northern coast. Although the island is a suburb of Townsville, the constraints placed on travel between the island and the resources of that city mean that the community experiences many of the isolation factors associated with more remote communities. Originally there were three small schools on the Island - Picnic Bay, Horseshoe Bay and Nelly Bay. A decision was made in 1970 to close the school at Picnic Bay and in 1972 the Horseshoe Bay School closed. The students from those schools were transported to the central school at Nelly Bay. This then became the Magnetic Island State School.